NEM Aggregation Tariff Overview

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1 1 NEM Aggregation Tariff Overview Harold Hirsch, Sr. Regulatory Analyst Maggie Dimitrova, Expert Program Manager June 17 th, 2014

2 Agenda Overview Eligibility Interconnection Billing Other programs and tariffs Resources Q & A

3 NEM Aggregation Overview

4 4 NEMA: Overview SB 594 allowed a single customer with multiple meters on the same property, or on properties adjacent or contiguous to it, to meet their energy needs with a renewable generator sized to the aggregate load of all eligible meters under Net Energy Metering (NEM) SB 594 led to the addition of NEMA (pronounced NEM A ) load aggregation provision in Rate Schedule NEM under Special Condition 8

5 5 NEMA: Timeline AL 4151-E NEMFC SB 594 NEMFC AL 11/30/12 Effective 1/1/13 Effective 1/1/13 Signed 09/27/12 Effective 1/1/13 Resolution.E-4610 Effective 9/19/13 Finds no cost shift AL 4305-E NEMA AL 10/21/13 Suppl. AL 1/16/14 NEMA Effective 2/20/14

6 6 NEMA: Definitions Generating Account serves the renewable generator and may or may not have load other than that of the generator There can be only one Generating Account per Arrangement Multiple technologies can serve the Generating Account Aggregated Account is any eligible load account elected by the customer for load aggregation Maybe a different rate class and under a different OAS Arrangement includes all of the eligible Aggregated Accounts that would benefit from the renewable generator, including the Generating Account All accounts in the Arrangement are billed together under NEMA

7 NEMA: Big Picture 7 NEM meter Farm load and PV Connected behind meter PG&E 1 MW or less PV or renewable generator M M M M Pump 5 Pump 2 Load meters Farm & Generator Pump 6 Same owner contiguous Public Road M Pump 3 Pump 1 M Different owner although adjacent (A) Aggregated accounts are located on the property where the Eligibl e Renewable Electrical Generation Facility is located or on property adjacent or contiguous t o that property as long as those properties are solely owned, leased, or rented by the Eligible Renewable Customer-Generator. (F) For purposes of this paragraph, parcels that are divided by a street, highway, or public thoroughfare are considered contiguous, provided they are otherwise contiguous and under the same ownership.

8 NEMA: Single Generating Account 8 1 MW or less PV or renewable generator NEM meter Farm load and PV Connected behind meter PG&E M M Pump 2 Farm & Generator M M Pump 3 Pump 1 1 MW or less PV or renewable generator An arrangement can only have one generating account. This would have to be split into two arrangements.

9 NEMA: Greenfield Generating Account 9 Barn load PG&E M M Pump 2 Barn M NEM meter M 1 MW or less renewable generator No load Pump 1 An arrangement can have the generating account as a no load account. This can also be done with a second service on a parcel where there is an existing load account. The generating account will need to be on a general service rate (e.g. A1, A6, A10, E19, E20)

10 NEMA Eligibility

11 11 NEMA: Technologies NEMA: Technologies Eligible renewable generators include.. include Solar photovoltaic Solar thermal Biomass Wind Geothermal Fuel cells using renewable fuels Storage (batteries) Digester gas Municipal solid waste converslon Landfill gas Ocean wave, ocean thermal, tidal current Small hydroelectric generation

12 12 NEMA: Eligibility Requirements Size up to 1 MW and sized to the aggregated total annual load (kwh) of the eligible accounts that are Property located on the property with the generator or properties adjacent or contiguous to it as long as Ownership all properties are solely owned, leased, or rented by the customer and... Accounts all accounts are under the same customer of record

13 13 NEMA: Adjacent or Contiguous Adjacent or contiguous under this tariff allows load aggregation for customer accounts that are located: On the property where the generator is located On a property touching the property with the generator On a property that is touching a property eligible to be in the aggregation arrangement On a property divided by a street, highway, or public thoroughfare are considered contiguous, provided they are otherwise contiguous where each property is under the same sole ownership or control

14 14 NEMA: Example 1 A B C D E = Renewable Electrical Generation Facility = Solely Owned, Leased or Rented = Not Solely Owned, Leased or Rented = Meter = Eligible Parcel = Ineligible Parcel

15 15 NEMA: Example 2 A B C D E = Renewable Electrical Generation Facility = Solely Owned, Leased or Rented = Meter = Eligible Parcel = Not Solely Owned, Leased or Rented = Ineligible Parcel

16 16 NEMA: Example 3 E A D B C F G = Renewable Electrical Generation Facility = Solely Owned, Leased or Rented = Not Solely Owned, Leased or Rented = Meter = Eligible Parcel = Ineligible Parcel

17 17 NEMA: Example 4 E D A B C F G = Renewable Electrical Generation Facility = Solely Owned, Leased or Rented = Not Solely Owned, Leased or Rented = Meter = Eligible Parcel = Ineligible Parcel

18 18 NEMA: Example 5 E D A B C F G = Renewable Electrical Generation Facility = Solely Owned, Leased or Rented = Not Solely Owned, Leased or Rented = Meter = Eligible Parcel = Ineligible Parcel

19 NEMA Interconnection

20 20 NEMA: Interconnection NEMA generator must be approved for interconnection under the applicable guidelines of Rule 21 and the NEM tariff Customers must supplement the appropriate NEM interconnection application with the NEM LOAD AGGREGATION APPENDIX (form ) and parcel maps NEMS (form A) NEMEXP PV/Wind (form ) NEMEXP Non-PV/Wind (form ) or NEMMT (form )

21 21 NEMA: How to Apply Standard NEM (< 30 kw) Please submit the completed NEM Load Aggregation Appendix and parcel maps along with the interconnection package to Expanded NEM (30 kw 1 MW) Please submit the completed NEM Load Aggregation Appendix and parcel maps along with the interconnection application via the online portal.

22 22 NEMA: Application Process Customer PG&E Customer PG&E Submits Interconnection Application and Agreement NEMA Appendix Parcel Maps EGI Reviews Application Land Dept. reviews adjacent/ contiguous Engineering Review Completes Final Inspection Submits final signoff permit Performs Field Inspection Issues Permission to Operate Letter Sets up the Billing

23 23 NEMA: Help with Submitting a Complete Application NEM Load Aggregation Appendix Identify the Generating Account and Aggregate Accounts. List only current Service Agreement IDs Select Yes or No for requesting Second Service for the Generator Provide the Annual kwh Load, Total Annual kwh, and or Estimated Annual kwh Production Make sure the form is signed and dated

24 24 NEMA: Help with Submitting a Complete Application NEMA Spreadsheet Identify the Generating Account and Aggregate Accounts. List only current Service Agreement ID Provide the existing electric rate schedule Reference the service address as it appears on the PG&E Bill Microsoft Excel Worksheet

25 25 NEMA: Help with Submitting a Complete Application Parcel Maps Submit County s Parcel Map not hand drawn Parcel Map Identify Meter Locations and Meter Number/s Mark the Generating Account and Aggregate accounts. Adobe Acrobat Document

26 26 NEMA: Metering Generating Account meter will measure excess kwh that is exported after on-site energy is netted Must be capable of separately measuring the kwh export to the smallest time interval used for billing for any of the Aggregated Accounts NGOM is allowed for no-load generator accounts Customers may request 2 nd Service for such accounts subject to restrictions Aggregated Account meter must be consistent with the otherwise applicable rate schedule (OAS) for that account The customer is responsible for all metering charges under the OAS

27 27 NEMA: Distribution Upgrades NEMA generator is likely to be oversized compared to the directly connected load Increase in export may trigger additional interconnection studies or supplemental reviews required under Rule 21 or additional distribution upgrades As with regular NEM, PG&E pays for system upgrades required unless the NEMA customer is the only beneficiary of a required interconnection facility Regular process under the Green Book and Distribution Handbook

28 NEMA Billing

29 29 NEMA: Billing Overview The excess generation output (kwh) exported to the grid is allocated between the Aggregated Accounts and the Generating Account (if it has load) monthly All participating accounts will have the same monthly billing cycle and will true-up 12 months after the interconnection approval date, or Anniversary thereof or true-up will occur the date an account is closed or switches electric service provider NEMA customers are billed monthly NEMA customers are exempt from standby charges and nonbypassable charges The NEMA generator account is permanently ineligible for AB 920 Net Surplus Compensation

30 30 NEMA: Billing Methodology Step 1 Establish Excess Monthly Generation: The generation of your system will first offset monthly usage, if any, on the Generating Account. After that, if there is net kwh exported to the grid over the billing month, it is allocated among all the Aggregated Accounts.

31 31 NEMA: Billing Methodology Step 2 Dynamically Allocate Excess Monthly Generation: The excess monthly generation kwh is allocated according to a special formula to each of the Aggregated Accounts and the Generating Account. The Allocation is not a fixed percentage but has a dynamic structure that changes percentages monthly to ensure that the excess generation (kwh) exported to the grid is better allocated among Aggregated Accounts and the Generating Account. The allocation is tracked by 15 minute or hour interval and allocated accordingly. sum(generated kwh) x sum(acct1 usage kwh) (previous month's allocation) OAS rate [(sum (acct 1 usage kwh) + + sum(acct n usage kwh) ]

32 32 NEMA: Billing Methodology Step 3 Net Allocation and Usage, and Value Net At Aggregated Account s Rate Schedule: For each Aggregated Account and the Generator Account, the kwh allocation is netted with the account s load. If the account is on a time-of-use rate, the netting occurs within each time-of-use period for all the accounts on time-of-use rates. If the Aggregate Account is on a non-time-of-use rate (e.g., A1 or E1), it is valued at the fixed energy charge for that flat rate. Once the netting occurs, each account is essentially treated like an individual NEM account. The net kwh is valued based on the time-ofuse period it occurred and the otherwise applicable rate schedule (OAS) for the given account. (Only the net kwh for the Generating Account is valued at the Generating Account s rate schedule).

33 NEMA Load Aggregation Illustration Solar Panels on generator account Gen nets with load AG pump on gen account Exported kwh to PG&E (after serving on-site load) is recorded & allocated to load aggregation accounts Exports to PG&E Imports from PG&E Imported kwh from PG&E is billed to generator account but... generator account may also receive allocated kwh offset 33 PG&E s ABS Billing System The exported kwh allocation is performed DYNAMICALLY each month by PG&E s billing system based on each aggregated account s proportion of that month s cumulative aggregate load and cumulative generation since the beginning of the true-up Load Aggregation Accounts Allocated kwh nets with each load kwh to determine energy charges on account OAS

34 34 NEMA: Billing Costs Customers are responsible for paying billing fees, which reflect the incremental billing cost for NEMA: Initial set-up - $25 for each Aggregated Account and the Generating Account, capped at $500 per Arrangement Monthly fees - $5 for each Aggregated Accounts and the Generating Account Service Charges will be reviewed in one year after program start and are may be revised at that time.

35 Other Programs and Tariffs

36 36 NEMA: Demand Response Demand Response Programs NEMA customers are eligible for the same demand response programs as NEM customers. Program elements that are affected by a customer s load (e.g., eligibility, payments) will also exclude from consideration any impacts of the generation

37 37 NEMA: Incentive Programs NEMA generator may receive an incentive as long as it meets the incentive program s eligibility requirements SGIP - approved for incentive collections through the end of 2014 and administration of funds through 2015 Incentives available for natural gas and CHP technologies Waitlist for renewable and emerging technologies CSI the program has successfully reached its adoption goals and is now closed

38 38 NEMA: ESP/CCA Customers Direct Access (DA) customers may qualify for NEMA only if their Energy Service Provider (ESP) or Community Choice Aggregator (CCA) tariffs permit NEM Load Aggregation All accounts in the Arrangement must take service either only from PG&E, a single ESP, or a single CCA. PG&E ESP CCA PG&E PG&E ESP ESP CCA CCA If PG&E is the billing agent and recovers the NEMA incremental billing costs from the customer s ESP and/or CCA, a mixture of ESPs may be permitted

39 NEMA: Other Tariffs Master Metered NEM solar panels M Utility Power PG&E Billing NET Billing Meter & inverter Central Gen on single MM account Must be an existing MM Account Must be billed in accordance with Rule 18 Individual Gen for each account Each customer is a NEM account Each customer receives a bill More costly to install 39 Individually Metered NEM solar panels Utility Power PG&E NET Billing Meters & Inverters solar panels Net Generation Output meter & Inverter PG&E Load account Billing Meters Utility Power NEMV Virtual NEM Central Gen Acct w/ no load Many load-only individually meter benefiting accounts Credit allocated on each customer s bill All accts at a Single Service Delivery Point Single Gen Acct w/ or w/o load Credit allocated to load on same customer s owned, leased or rented adjacent & contiguous property solar panels Credit allocated in relation to monthly load Gen on Acct with or without Load with 2 channel Interval meter Utility Power Aggregated load account(s) under same owner on contiguous or adjacent property NEMA Load Aggregation

40 Retail DG Options 40 Rule 21 NEM NEMA NEMV NEMVMASH Technology Configuration Who All Solar PV Wind RPS Solar PV Wind RPS Solar PV Wind RPS Solar PV generator & load at single account generator and load at single account one generator account; many aggregated accounts one generator account; many benefitting accounts one generator account; many benefitting accounts Gen Kw limit Export Standby NBC NSC anyone 2 MW uncompensated Ask Ask non eligible anyone Same customer adjacent & contiguous parcel anyone low income MASH or NSHP participant 1 MW total 1 MW total 1 MW total 1 MW total sized to annual load at single account sized to annual load of arrangement sized to annual load at service delivery point sized to annual load exempt Exempt exempt exempt on net usage only On net usage only on net usage only on net usage only eligible Non eligible eligible eligible NEMFC Fuel cell w/nonrenewablefuel generator & load at one or more accounts anyone 1 MW total sized to annual load Can aggregate load exempt on net usage only non eligible NEMBIO biogas digester **closed** **closed** 1 MW total sized to annual load exempt on net usage only non eligible NEMMT Combination of (a) 2 types of nem; or (b) nem & non nem generator & load at single account anyone Ask Sized to annualload NEMportion exempt NEM: on net usage On retail NEM portion RES BCT* RPS generator account; many benefitting accounts in same city, county or district Local Government, colleges 5 MW total/ gen acct sized to annual load Ask Ask non eligible

41 41 NEMA: Resources Tariff: NEMA Appendix: Standard NEM: erateownpower/netenergymetering/standardnem/ Expanded NEM: erateownpower/netenergymetering/expandednem/ NEMA Slides:

42 42 NEMA: Customer Support General Support: Solar Customer Service Center, Application Support: Interconnection Inbox,

43 NEMA: Q & A 43

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